May 21 (Bloomberg) -- Transfield Services Ltd. plunged to
the lowest in 12 years in Sydney, leading a slump in mining and
infrastructure contractors, after cutting its earnings forecast
amid a slowdown in mining and processing activity.

Transfield fell 24 percent to 97 Australian cents, the
lowest since May 3, 2001. Fleetwood Corp., which sells and rents
portable buildings to infrastructure and mining customers,
tumbled 25 percent after saying yesterday that second-half
earnings will be below the first half amid a “softening
resources sector.” The two companies were among the three worst
performers in the benchmark S&P/ASX 200 Index.

Mining and resources sector contractors are suffering with
major customers deferring projects as commodity prices fall and
costs rise. BHP Billiton Ltd., the world’s largest mining
company, is targeting an 18 percent cut to capital spending in
fiscal 2014, its new chief executive, Andrew Mackenzie, said May
14. Rio Tinto Group is seeking to cut $2 billion in costs this
year across its mining and corporate offices.

A slowdown is continuing in the mining and process
industries and customers are “showing increasing cost and
capital discipline,” Transfield said in a separate statement
today for a presentation by Chief Executive Officer Graeme Hunt.

Net profit after tax and before amortization and one-time
items may be A$62 million ($61 million) to A$65 million in the
12 months to June 30, the Sydney-based company said today in a
statement. That compares with its previous estimate of A$85
million to A$90 million.

Ausdrill Ltd., which operates drill rigs and provides
blasting services for companies including BHP and Rio Tinto,
slipped 2.8 percent to A$1.24. Monadelphous Group Ltd., which
has construction and maintenance contracts with companies
including Rio Tinto, fell 4.7 percent to A$16.60. UGL Ltd., an
Australian infrastructure contractor which lowered its profit
forecast on May 15, fell 0.7 percent to A$7.30.